Investing.com - Activity in the UK construction sector slowed last month, according to a closely watched business survey released on Wednesday.
Research firm Markit said its construction purchasing managers’ index rose to 47.0 in March, compared to forecasts for a reading of 50.9.
The prior month’s reading was 51.4.
On the index, a reading above 50.0 indicates expansion, below indicates contraction.
IHS Markit indicated that snow disruption contributed to what was the fastest drop in construction activity since July 2016.
The research firm further highlighted that civil engineering work declined at the sharpest pace in five years while input cost inflation moderated to a 20-month low.
“The construction sector continued to experience subdued business conditions during March, but snow-related disruption was a key factor behind the marked decline in activity on site reported by survey respondents,” IHS Markit associate director Tim Moore commented in the report.
Moore also added that a solid rise in employment numbers and the rebound in business expectations to a nine-month high provided an indication that construction activity will strengthen over the near-term.
“However, survey respondents noted that underlying demand remains constrained by heightened economic uncertainty and risk aversion among clients,” Moore warned.